U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the 9 month period ended December 31, 1999
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
Commission File No. 0-14840
BERES INDUSTRIES, INC.
(Name of Small Business Issuer in its Charter)
New Jersey 22-1661772
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1785 Swarthmore Avenue
Lakewood, New Jersey 08701
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (732) 367-5700
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15 (d) of the Exchange Act during the past
12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
(1) Yes X (2) Yes X No
State the number of shares outstanding of each of the
Registrant's classes of common equity, as of the latest
applicable date:
12,411,934 - February 1, 2000
Beres Industries, Inc.
December 31, 1999
Form 10-QSB
Index
Part I: Financial Information
Item 1. Financial Statements
Balance Sheets at December 31, 1999 and March 31, 1999
Statements of Operations for the Three Months Ended
December 31, 1999 and 1998
Statements of Comprehensive Income (Loss) for the Three
Months Ended December 31, 1999 and 1998
Statements of Operations for the Nine Months Ended
December 31, 1999 and 1998
Statements of Comprehensive Income (Loss) for the Nine
Months Ended December 31, 1999 and 1998
Statement of Changes in Stockholders Equity for the
Nine Months Ended December 31, 1999
Statements of Cash Flows for the Nine Months Ended
December 31, 1999 and 1998
Notes to Financial Statements
Item 2. Management s Discussion and Analysis, Material Changes
in Financial Condition and Results of Operations
Part I - Item 1
BERES INDUSTRIES, INC.
BALANCE SHEETS
12/31/99 3/31/99
ASSETS
Current Assets
Cash and Cash Equivalents $ 282,000 $ 458,000
Marketable Securities 6,000 3,000
Accounts Receivable - Trade:
Less Allowance for Doubtful
Accounts of $23,000 and $23,000
Respectively 171,000 181,000
Inventories - Raw Materials 41,000 47,000
- Work in Process 139,000 37,000
- Finished Goods 91,000 85,000
Prepaid Expenses and Other
Current Assets 8,000 17,000
Total Current Assets 738,000 828,000
Property, Plant and Equipment - Less
Accumulated Depreciation of
$4,740,000 and $4,674,000
Respectively 1,198,000 1,264,000
Other Assets 48,000 48,000
Net Assets of Discontinued Operations 45,000 45,000
Total Assets $ 2,029,000 $ 2,185,000
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
BALANCE SHEETS (Continued)
12/31/99 3/31/99
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Current Maturities of Long-Term
Debt $ 84,000 $ 83,000
Current Maturities of Capital
Lease Obligations 33,000 34,000
Accounts Payable and Accrued
Expenses 228,000 251,000
Customer Deposits 139,000 23,000
Total Current Liabilities 484,000 391,000
Long-Term Debt - Less Current
Maturities 671,000 731,000
Capital Lease Obligations -
Less Current Maturities -0- 23,000
Total Liabilities 1,155,000 1,145,000
Stockholders Equity
Common Stock - Par Value $0.02 Per
Share:
Authorized 21,000,000 Shares
Issued and Outstanding -
12,412,000 Shares 248,000 248,000
Capital in Excess of Par Value 3,445,000 3,445,000
Accumulated Other Comprehensive
Income (Loss) 6,000 3,000
Accumulated Deficit (2,655,000) (2,486,000)
1,044,000 1,210,000
Less:Common Stock Receivable 170,000 170,000
Total Stockholders Equity 874,000 1,040,000
Total Liabilities and Stockholders
Equity $ 2,029,000 $ 2,185,000
Unaudited -See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
12/31/99 12/31/98
Net Sales $ 524,000 $ 402,000
Costs and Expenses
Cost of Goods Sold 357,000 335,000
Selling, General and
Administrative Expenses 162,000 158,000
Total Costs and Expenses 519,000 493,000
Operating Income (Loss) 5,000 (91,000)
Other Income (Expenses):
Interest and Other Income 3,000 9,000
Interest Expense (18,000) (19,000)
Total Other Income (Expenses)- Net (15,000) (10,000)
Loss From Continuing
Operations (10,000) (101,000)
Income (Loss) From Discontinued
Operations -0- -0-
Net Loss Applicable
To Common Shareholders $ (10,000) $ (101,000)
Loss Per Common Share Outstanding
Loss From Continuing Operations
Applicable Per Common Share-
Basic and Diluted $ (0.001) $ (0.008)
Income (Loss) From Discontinued
Operations Applicable Per Common
Share - Basic and Diluted -0- -0-
Net Loss Applicable Per Common Share-
Basic and Diluted $ (0.001) $ (0.008)
Number of Shares Outstanding Per Common
Share-Basic and Diluted Used in Per
Share Calculation 12,412,000 12,412,000
Unaudited - See Accompanying Notes to Financial Statements
PART I - ITEM 1
BERES INDUSTRIES, INC.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Three Months
Ended Ended
12/31/99 12/31/98
Net Loss Applicable To Common Shareholders $ (10,000) $ (101,000)
Other Comprehensive Income (Loss), Net Of Tax:
Unrealized Holding Gain (Loss) Arising During
The Period 2,000 (4,000)
Net Comprehensive Loss $ (8,000) $ (105,000)
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF OPERATIONS
Nine Months Nine Months
Ended Ended
12/31/99 12/31/98
Net Sales $ 1,370,000 $ 1,577,000
Costs and Expenses
Cost of Goods Sold 1,008,000 1,196,000
Selling, General and
Administrative Expenses 486,000 498,000
Total Costs and Expenses 1,494,000 1,694,000
Operating Loss (124,000) (117,000)
Other Income (Expenses):
Interest and Other Income 10,000 29,000
Interest Expense (55,000) (60,000)
Total Other Income (Expenses)- Net (45,000) (31,000)
Loss From Continuing
Operations (169,000) (148,000)
Income (Loss) From Discontinued
Operations -0- -0-
Net Loss Applicable
To Common Shareholders $ (169,000) $ (148,000)
Loss Per Common Share Outstanding
Loss From Continuing Operations
Applicable Per Common Share-
Basic and Diluted $ (0.014) $ (0.012)
Income (Loss) From Discontinued
Operations Applicable Per Common
Share - Basic and Diluted -0- -0-
Net Loss Applicable Per Common Share-
Basic and Diluted $ (0.014) $ (0.012)
Number of Shares Outstanding Per Common
Share-Basic and Diluted Used in Per
Share Calculation 12,412,000 12,412,000
Unaudited - See Accompanying Notes to Financial Statements
PART I - ITEM 1
BERES INDUSTRIES, INC.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
<TABLE>
Nine Months Nine Months
Ended Ended
12/31/99 12/31/98
<S> <C> <C>
Net Loss Applicable To Common Shareholders $ (169,000) $ (148,000)
Other Comprehensive Income (Loss), Net Of Tax:
Unrealized Holding Gain (Loss) Arising During
The Period 3,000 (18,000)
Net Comprehensive Loss $ (166,000) $ (166,000)
</TABLE>
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999
<TABLE>
Accumulated
Common Stock Capital in Other Common
Excess of Comprehensive Accumulated Stock
Shares Par Value Par Value Income Deficit Receivable
<S>
Balances -
<C> <C> <C> <C> <C> <C>
April 1, 1999 12,412,000 $ 248,000 $3,445,000 $ 3,000 $(2,486,000) $ (170,000)
Net Loss
for the Period - - - - (169,000) -
Other Comprehensive
Income, Net Of Tax,
Unrealized Holding
Gain Arising During
The Period - - - 3,000 - -
Balances -
Dec. 31, 1999 12,412,000 $ 248,000 $3,445,000 $ 6,000 $(2,655,000) $(170,000)
</TABLE>
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
1999 1998
Cash Flows from Operating Activities:
Net Loss for the Period $ (169,000) $ (148,000)
Adjustments to Reconcile Net
Loss to Net Cash Provided by
(Used in) Operating Activities:
Depreciation and Amortization 66,000 82,000
Decrease in Bad Debt Allowance
from Continuing Operations -0- (8,000)
Changes in Operating Assets and
Liabilities:
Accounts Receivable - Trade 10,000 205,000
Inventories (102,000) (74,000)
Prepaid Expenses and Other
Current Assets 9,000 3,000
Other Assets -0- 2,000
Accounts Payable and Accrued
Expenses (23,000) (93,000)
Customer Deposits 116,000 88,000
Net Cash Provided By (Used In)
Operating Activities (93,000) 57,000
Cash Flows from Investing Activities:
Aquisitions of Property and
Equipment -0- -0-
Net Cash Provided By (Used in)
Investing Activities $ -0- $ -0-
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS (Continued)
FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
1999 1998
Cash Flows from Financing Activities:
Principal Payments on Long-Term Debt $ (59,000) $ (51,000)
Principal Payments on Capital
Lease Obligations (24,000) (23,000)
Net Cash Used in Financing
Activities (83,000) (74,000)
Net Decrease in Cash and Cash
Equivalents (176,000) (17,000)
Cash and Cash Equivalents,
Beginning of Period 458,000 518,000
Cash and Cash Equivalents,
End of Period $ 282,000 $ 501,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash Paid for Interest $ 55,000 $ 60,000
Cash Paid for Income Taxes $ 250 $ 250
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,1999
Note 1 - Basis of Presentation
The March 31, 1999 balance sheet at the end of the preceding
fiscal year has been derived from the audited balance sheet
contained in the Company s Form 10-KSB and is presented for
comparative purposes. All other financial statements and
financial information presented are unaudited. In the opinion
of Management, all adjustments which include only normal
recurring adjustments necessary to present fairly the financial
position for all periods presented have been made. The results
of operations for the interim periods are not necessarily
indicative of the operating results for the full year.
Footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been omitted in accordance with the published
rules and regulations of the Securities and Exchange Commission.
However, the footnote below was added to disclose required
segment information in the reporting periods. These financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company s
Form 10-KSB for the most recent fiscal year ended March 31, 1999.
Note 2 - Interim Segment Information Reporting
Segment Information - In 1997, the Financial Accounting Standards
Board issued SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, which has been adopted by
the Company. SFAS No. 131 requires companies to report financial
and descriptive information about its reportable operating
segments on an interim basis. The Company discusses its segments
in its Management s Discussion and Analysis appearing elsewhere
herein. The segment descriptions are an integral part of this
footnote.
Unaudited
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
Note 2 - Segment Information (Cont d)
The Precision Molds Segment provides materials, labor and
overhead at cost determined on the same basis as for sales to
unaffiliated parties. Such intersegment costs which are not
included in revenues or costs of Precision Molds were $2,000 for
the three months ended December 31, 1999 as compared to $4,000
for the three months ended December 31, 1998 and were $16,000
for the nine months ended December 31, 1999 as compared to
$15,000 for the nine months ended December 31, 1998.
Information about the Company s segments is as follows for the
three months ended December 31, 1999 and 1998 and for the nine
months ended December 31, 1999 and 1998:
Three Months Ended Three Months Ended
Dec. 31, 1999 Dec. 31, 1998
Operating Operating
Segment Sales Income(Losses) Sales Income(Losses)
Precision Molds $252,000 $ 1,000 $ 117,000 $ (32,000)
Custom Molding 220,000 32,000 222,000 (22,000)
Finished Ribbons 52,000 (28,000) 63,000 (37,000)
Discontinued Operation -0- -0- -0- -0-
Totals $524,000 $ 5,000 $ 402,000 $ (91,000)
Nine Months Ended Nine Months Ended
Dec. 31, 1999 Dec. 31, 1998
Operating Operating
Segment Sales Income(Losses) Sales Income(Losses)
Precision Molds $ 493,000 $ (80,000) $ 444,000 $ (67,000)
Custom Molding 693,000 49,000 887,000 39,000
Finished Ribbons 184,000 (93,000) 246,000 (89,000)
Discontinued Operation -0- -0- -0- -0-
Totals $1,370,000 $(124,000) $1,577,000 $(117,000)
Unaudited
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
Note 2 - Segment Information (Cont d)
Reconciliation of Segment Operating Income (Losses) to Total
Company Net Loss for the Three Months Ended December 31, 1999
and 1998 and for the Nine Months Ended December 31, 1999 and
1998:
Three Months Ended Three Months Ended
Dec. 31, 1999 Dec. 31, 1998
Total Segment Operating Income (Losses) $ 5,000 $ (91,000)
Interest Expense (18,000) (19,000)
Interest and Other Income 3,000 9,000
Net Loss $ (10,000) $ (101,000)
Nine Months Ended Nine Months Ended
Dec. 30, 1999 Dec. 30, 1998
Total Segment Operating Income (Losses) $(124,000) $(117,000)
Interest Expense (55,000) (60,000)
Interest and Other Income 10,000 29,000
Net Loss $(169,000) $(148,000)
As of the last annual report (Form 10-KSB) as of March 31,
1999, there have been no material changes in total assets during
the nine months ended December 31, 1999 and there have been no
material changes in the basis of measurement of segment
accounting during the nine months ended December 31, 1999.
Unaudited
<PAGE>
PART I - ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS
Net Sales for the nine months ended December 31, 1999 decreased by
$207,000 or 13.1% from the respective 1998 period. For the three
months ended December 31, 1999, Net Sales increased $122,000 or
30.4% to $524,000 from $402,000 for the three months ended December
31, 1999. Net Sales by segment were as follows:
Nine Months Three Months
Ended December 31, Ended December 31,
1999 1998 1999 1998
Precision Molds $ 493,000 $ 444,000 $ 252,000 $ 117,000
Custom Molding 693,000 886,000 220,000 222,000
Finished Ribbons 184,000 247,000 52,000 63,000
$1,370,000 $1,577,000 $ 524,000 $ 402,000
Precision Mold's sales vary from quarter to quarter depending on the
production time required to build various tools and the amount of
backlog. During the nine months and three months ended December 31,
1999, precision mold sales increased approximately $49,000 or 11%
and $135,000 or 115.4% from the similar periods of 1998. These
increases in sales for this product segment are primarily the result
of an increase in demand and backlog for precision molds. The
current backlog remains at an increased level and it is anticipated
that sales for this segment for fiscal 2000 will exceed those of
fiscal 1999.
Custom molding consists of the Company's injection molding
operations, including ribbon cartridge kits molded and sold to
outside customers in the ribbon industry as well as the sale of
custom molded contract products to plastic product manufacturers.
Sales for this segment decreased approximately $193,000 or 21.8% and
$2,000 or 1.0% for the nine months and three months ended December
31, 1999 when compared to the nine months and three months ended
December 31, 1998. These decreases are primarily the result of the
reduced levels of ribbon cartridge kits molded and sold to customers
in the depressed ribbon industry as well as the slowdown experienced
by one particular custom molding customer. Management intends to
step up its marketing efforts in the custom molding area and remains
hopeful that this will lead to increased sales for this product
segment.
Finished ribbon cartridge sales decreased approximately $63,000 or
26.0% and $11,000 or 17.5% for the nine months and three months
ended December 31, 1999 as compared to their respective 1998
periods. These continuing decreases are primarily the result of the
continued shrinking of the ribbon industry due to effect of laser
and inkjet printers on impact ribbon printers. Although increasing
sales and attaining true profitability is doubtful for this segment,
Management is confident that the ribbon products that are produced
and sold contribute positively to covering certain fixed overhead,
which costs would remain if ribbon manufacturing were discontinued.
Therefore, it is Management's intention at this time to continue
manufacturing impact printer ribbons.
Contract costs and costs of goods sold varies based upon sales
volume and product mix. Cost of sales were 73.6% and 68.1% for the
nine months and three months ended December 31, 1999 when compared
to the 75.8% and 83.3% for the respective periods of 1998. These
improvements in the cost of goods percentages are primarily the
result of a more favorable product mix, namely, the higher
percentage of total sales attributed to precision molds which
produced a higher gross margin than usual along with a mix of very
profitable custom molding jobs despite the lower sales volume.
Selling, general and administrative expenses decreased approximately
$12,000 to $486,000 for the nine months ended December 31, 1999 when
compared to the similar 1998 period. For the three months ended
December 31, 1999, selling general and administrative expenses
increased approximately $4,000 to $167,000 when compared to the
three months ended December 31, 1998. These changes in the year to
year figures of approximately 2% are not attributable to any
individual expense but rather the net result of certain expenses
increasing and others decreasing.
Interest and other income decreased approximately $19,000 and $6,000
for the nine months and three months ended December 31, 1999 when
compared to their respective 1998 periods. These decreases are
primarily the result of lower interest earned on the reduced cash
balances during the most recent year.
Interest expense decreased approximately $5,000 and $1,000 for the
nine months and three months ended December 31, 1999 as compared to
the nine months and three months ended December 31, 1998. These
decreases represent lower interest costs as a result of the
repayment of debt which occurred during the periods.
Net Income (loss) for the nine months ended December 31, 1999 was
($169,000) as compared to($148,000) for the similar 1998 period.
For the three months ended December 31, 1999, the Company had a net
loss of ($10,000) as compared to a net loss of ($101,000) for the
three months ended December 31, 1998. The decrease in loss for the
most recent three month period is primarily the result of the
increase in gross profit on the higher sales of precision molds.
The increase in loss for the most recent nine month period is
primarily the result of the lower sales volume and the nature of
certain fixed expenses.
Management is continuing to monitor the performance of all segments
with an emphasis on attempting to increase sales and improve cost
controls. Management is hopeful for an improvement in long term
operating results.
MATERIAL CHANGES IN FINANCIAL POSITION
The principal change in financial position during the nine months
ended December 31, 1999, was a decrease in working capital of
approximately $183,000 to $254,000. During this same period,
operations used cash of ($93,000). During the nine month period
ended December 31, 1999, the Company made principal payments on
long-term debt and capital leases of approximately ($83,000)
resulting in a net decreases in cash and cash equivalents of ($176,000).
As of December 31, 1999. the Company's cash position was $282,000.
As mentioned in prior filings, the Company has for some time been
evaluating the possibility of raising capital to invest in new
products or attempting to align the Company with a strategic partner
who could utilize the Company's capabilities as it moves forward in
order to reverse downward sales trends. As announced recently, the
Company has entered into a Stock Purchase Agreement with an
investment group headed by Joel Schonfeld, a New York Financier.
(See Part II, Item 5, "Other Information") If the Private Placement
is successfully completed and the contemplated transaction closes,
it is the intention of the Company to phase out of its existing
operations other than precision molds and certain limited custom
injection molding contracts, and purchase the equipment and tooling
necessary to manufacture a proprietary product line that will
consist of five gallon plastic pails for the paint, chemical, and
food service markets. Although this is a competitive market,
Management is confident in its ability to successfully manufacture
this product and believes that through contacts established by the
investment group, sufficient sales will be attained to warrant this
investment.
Due to the fact that the potential success of accomplishing the
above mentioned transition is not determinable at this time, it is
Management's intention to continue its efforts to increase sales and
improve cost controls. The Company will continue to operate under
the assumption that no significant new financing will be available.
Scheduled obligations are expected to be met by operating cash
flows. Absent any unanticipated operating expenses or a significant
downturn in the overall economy, Management is hopeful for an
improvement in long-term operating results.
Year 2000 Issue
The Company's operations transitioned the Year 2000 roll over
without any significant interruption of operations.
FORWARD LOOKING STATEMENTS
The preceding Management's Discussion and Analysis contains
various forward-looking statements which represent the Company's
beliefs or expectations regarding future events. The words
"believes," "expects," "estimates" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements include, without limitation, discussions as to sales
outlooks, outlooks for operating results. All forward-looking
statements involve a number of risks and uncertainties that could
cause the actual results to differ materially from the projected
results, including problems that may arise on the part of third
parties over whom the Company has little or no control. The impact
of the foregoing could, in turn, have a material adverse effect on
the Company's results of operations and financial condition.
PART II-OTHER INFORMATION
Item 1 Legal Proceedings:
There have been no material changes in legal proceedings from as
previously reported in the Company's 10-KSB for the fiscal year ended
March 31, 1999.
Item 2 Change in Securities:
None
Item 3 Default Upon Senior Securities:
None
Item 4 Submission of Matters to a Vote of Security Holders:
None
Item 5 Other Information:
On October 8, 1999, the Company entered into a Stock
Purchase Agreement with Beres Acquisition Partnership, a New York
general partnership ("BAP"). In January, 2000, the Stock Purchase
Agreement was amended to convert the proposed Private Placement from
the purchase of equity to the purchase of convertible debt.
The Stock Purchase Agreement, as amended, provides for the
issuance of a minimum of $500,000, and a maximum of $1,000,000 of 9%
Convertible Subordinated Promissory Notes (the "Notes"), together with
the issuance of 6,000,000 shares of the Company's restricted,
unregistered shares, to BAP, upon completion of the minimum amount of
the Private Placement. As soon as possible after completion of the
Private Placement, the Company shall present to its Shareholders a
proposal to reverse split the Company's outstanding shares on a four
to one basis. Immediately following approval of the reverse split,
there shall be issued to BAP, an additional 4,900,400 post reverse
split shares, and the Notes shall become convertible into one share of
post reverse split common stock, for each $.50 of the principal amount
of the Notes being tendered for conversion. Upon completion of the
minimum amount of the Private Placement, three representatives of BAP
shall be named to the Company's Board of Directors, thereby effecting
a change of control to BAP.
At present, the Private Placement has commenced, and the
Company is awaiting receipt of the minimum amount of the Private
Placement.
Item 6 Exhibits and Reports on Form 8-K:
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
BERES INDUSTRIES, INC.
Date: February 14, 2000 (Registrant)
/s/ Charles Beres, Jr.
Charles Beres, Jr., President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> DEC-31-1999
<CASH> 282,000
<SECURITIES> 6,000
<RECEIVABLES> 194,000
<ALLOWANCES> 23,000
<INVENTORY> 271,000
<CURRENT-ASSETS> 738,000
<PP&E> 5,938,000
<DEPRECIATION> 4,740,000
<TOTAL-ASSETS> 2,029,000
<CURRENT-LIABILITIES> 484,000
<BONDS> 671,000
<COMMON> 248,000
0
0
<OTHER-SE> 626,000
<TOTAL-LIABILITY-AND-EQUITY> 2,029,000
<SALES> 1,370,000
<TOTAL-REVENUES> 1,370,000
<CGS> 1,008,000
<TOTAL-COSTS> 1,494,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 55,000
<INCOME-PRETAX> (169,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (169,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (169,999)
<EPS-BASIC> (0.014)
<EPS-DILUTED> (0.014)
</TABLE>
